Power blackout risks: Risk management options

This report calls on governments, the electricity industry, consumers and insurers to take action to make the power supply, society and industry more resilient to events, such as earthquake and tsunami. The new position paper also contains a comprehensive overview of current and future challenges in respect of insurance coverage. It states that the risk of large scale power disruptions is set to increase due to the growing interconnectedness of electricity grids, changing mix of power sources and aging infrastructure. The earthquake, tsunami damage and resulting power shortage in Japan in March this year highlighted the vulnerability of the modern economy to blackouts and disruptions in power supply.

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